Alireza Kiani, the head of the Iran Cleaning, Cosmetic and Hygiene Industries Association, addressed serious challenges in the country's cosmetic and hygiene industry at the opening ceremony of the eighth Iran Cosmetica conference and exhibition, emphasizing the importance of addressing these issues.
Rising Costs and Supply Challenges
Kiani pointed out that the price of electricity for the industry has increased by 90 percent since last February and the price of gas has risen by 137 percent. He added that maritime shipping costs have risen from $2,000 to $12,000, rail transport from $2,800 to $13,600, and road transport from $1,800 to $18,500. These rising costs have severely pressured producers, and if this trend continues, supplying goods will face difficulties.
Reduction in Currency Allocation and Financial Problems
Kiani also referred to the reduction in currency allocation and the increase in currency prices, stating that production units are facing difficulties in financing and working capital. According to him, to meet production needs, at best, 230 units of currency are required, while last year this amount was 100 units. This situation indicates the government's inability to provide the necessary financial resources for production units.
Kiani also mentioned a 50 percent increase in liquidity and 90 percent inflation, adding that these conditions have led to deepening poverty and a decrease in demand levels. He warned that if producers continue as before, they will suffer losses, and the situation is heading towards bankruptcy.
Attention to Health and Product Quality
Reza Ansari, the deputy of general industries at the Ministry of Industry, Mine and Trade, also announced that planning for the provision of production inputs is underway in cooperation with the Central Bank, and about $9 billion in imports occurred in this sector last year. However, it is expected that the provision of the necessary currency for production from banking sources will not exceed $1 billion this year.
Mehdi Pir-Salehi, the head of the Food and Drug Organization, concluded by emphasizing the importance of supporting production alongside improving health, stating that consumer security and industry growth must be achieved together.
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